Milton council hears second-quarter financial report showing general fund revenues above midyear target

At its Aug. 11 study session, the Milton City Council received a second-quarter financial report from Interim Director Robec summarizing fund-by-fund performance through midyear. "General fund revenues look great at 63% with all revenue categories above the 50% target," Robec said, and reported general fund expenditures at 48.8% of budget.

The report noted several specific variances that officials said will normalize before the next quarterly update. Robec said judicial expenditures were higher than budget because the annual payment to the city of Puyallup for municipal court services was billed and paid earlier than in previous years; staff plan to allocate part of that amount to a new automated traffic safety camera fund prior to the next report. Robec said other administrative and personnel costs are up because of higher-than-expected unemployment claims, and that an indirect cost allocation is temporarily producing a negative facilities line that will likely change.

Council members asked about a category labeled "nonrevenues," which Robec said is currently at 173.9% because it includes facility rental deposits and a miscellaneous utility fee for duplicate billing that will be reallocated before the next quarterly report. "Those facility rental deposits, we generally refund those to the renters. That's the refund you'll see in an expenditure category, so that's why they're considered nonrevenues," Robec said.

Across other funds, Robec said the asset replacement and capital reserve fund and the street fund are close to targets, with the street fund showing revenues at about 49.4% and expenditures at 39.6%. He said the capital improvement fund received nearly $2.4 million in TIB grant revenues for the SR 99 Porter Way project and that larger capital expenditures to date include intersection improvements on SR 99 Porter Way and work on the community park outdoor meeting venue.

Utility funds were reported as generally healthy: the electric utility fund had revenues at 54.9% and expenditures at 40%, with interfund transfers slightly higher than budget because of stronger electric sales; the water utility and related capital funds showed revenues near budget and major projects identified as the new deep well and Portaway water main improvements. When asked whether staff had a firm estimate for additional deep-well costs, staff said they had general estimates but that final figures would not be known until the project goes out to bid.

Robec said staff will reallocate certain general fund charges into the new automated traffic safety camera fund before the next quarterly statement and will present additional detail if needed. The council did not take formal action on the report.